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Select a U.S. multinational company (Amazon), and respond to the following questions: · In terms of currency denomination, describe how the firm prices its revenues and costs. · For multinational...

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Select a U.S. multinational company (Amazon), and respond to the following questions:
· In terms of cu
ency denomination, describe how the firm prices its revenues and costs.
· For multinational enterprises (MNEs) with multiple foreign operations, consider any 2 of those operations and the contribution they are making to the parent firm's profits.
· What means do they use to hedge against exchange rate risk?
· Using this information, what do you think would be the effect of increases or decreases in the dollar’s exchange value on the firm’s profitability?
· Be sure to show all applicable work.
Present your findings as a Word document of 7–10 pages formatted in APA style. Include 5–7 academic, peer-reviewed references that are relevant to and support the deliverable.
Submitting your assignment in APA format means, at a minimum, you will need the following:
1. Title page: Remember the running head AND THE TITLE IN ALL CAPITALS.
2. Abstract: This is a summary of your paper—not an introduction. Begin writing in third-person voice.
3. Body: The body of your paper begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The type face should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA-level headings and references. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
4. Conclusion: Summary of what was covered in the paper, similar but not identical to the abstract.
5. Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hang indention, italics, and upper- and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the a
eviated in-body citations used in the paper. Every referenced item must have a co
esponding in-body citation.
Please do not include a table of contents.
Answered 4 days After Dec 02, 2021

Solution

Komalavalli answered on Dec 07 2021
122 Votes
Abstract:
Amazon.com is a US-based global technology company specializing in e-commerce, cloud computing, digital streaming, and artificial intelligence. In this we focused on the analysis of company’s strategic operation, pricing strategy and how they averse the risk through adaptation of derivatives.
Introduction:
It is one of the five largest information technology companies in the US along with Microsoft, Meta (Facebook), Apple and Google (alphabet). The company has been described as one of the most powerful cultural and economic forces in the world and one of the world's most valuable
ands. Customers may search up things, compare cu
ent retail pricing in
ick-and-mortar locations, discover it is somewhat lower digital, and buy it from providers such as Amazon in recent times. For those of us who are intrigued, it would be nice to discover how Amazon continuously prices their items so competitively, as well as the many pricing techniques and technologies at work. Customers may search up things, compare cu
ent retail pricing in
ick-and-mortar locations, discover it is somewhat lower digital, and buy it from providers such as Amazon in recent times. For those of us who are intrigued, it would be nice to discover how Amazon continuously prices their items so competitively, as well as the many pricing techniques and technologies at work.
Pricing Strategy of Amazon:
Although online sales account for the majority of Amazon's income, the corporate entity also has numerous other business areas that produce massive amounts of money. Third-party services are our second-largest revenue category after internet sales. It has been the most profitable company in the world, with a market capitalization of $1.7 trillion. However, the organization has evolved into something other than an internet retailer. Amazon now boasts numerous billion-dollar income sources. The majority of firm’s revenue comes from product sales. Because products have significant expenses, Amazon's profit margins on them are razor thin. Their operational income is driven by services such as Amazon Prime, seller services, and Amazon Web Services (AWS). Its business strategy gets its earnings from higher margin products such as Amazon Marketing, Prime Video, and AWS. The online businesses serve as a basis for future expansion. (Wallach, 2021)
While online retailers earned the most income (50.6 percent), 3rd party seller services also contributed significantly, accounting for 19.7 percent of total revenue. Third party selling has grown significantly over the years. AWS is the third most important income source, accounting for 12.4 percent of total revenue. Despite generating a modest fraction of total sales in 2019, AWS accounted for a big share of Amazon's operating profits, making it crucial to the firm's corporate profitability. (Wallach, 2021)
Operation of the firm and its contribution
Amazon India was launched in June 2013. The company has created an Amazon.in website that offers customers a variety of TV shows, books, and movies. It received more than 10,000 orders on its first day of operation. It is a wholly-owned subsidiary of American e-commerce giant Amazon, Inc. Jeff Bezos started Amazon's core business in 1994. When sales and growth in the United States reached saturation, Amazon sought to expand its business in other countries to further develop.
China has proven profitable thanks to its large market, well-developed infrastructure and internet access, which prompted Amazon to start a business in China. However, with fierce competition from local e-commerce giants like Alibaba, Amazon is starting to look for alternative solutions. The company saw tremendous potential in India and opened its business in India in 2013.
It cu
ently has millions of registered members and offers millions of products on the platform. Amazon India now sells various categories of products. Customers can also purchase directly from US sellers through the India Global Store. Amazon Prime has just launched in India, giving customers access to a wide range of products such as e-books, music, the latest deals, streaming video, and more. Amazon India is cu
ently offering PINs to most people operating in India. There are over 20,000 Indian merchants and 41 fulfillment...
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